Labdenediol diphosphate and sclareol are diterpenes that occur in plants. Labdenediol diphosphate is derived from cyclization of the acyclic pyrophosphate terpene precursor geranylgeranyl diphosphate (GGPP), and sclareol is derived from labdenediol diphosphate. Sclareol can be converted to ambroxide, a compound that is used widely in the perfume industry to impart ambergris notes. Thus, among the objects herein is the provision of labdenediol diphosphate synthase polypeptides, sclareol synthase polypeptides and methods for the production of labdenediol diphosphate and sclareol and ambroxide.